Co-Locating Purchasing Personnel, Essay

What is the logic behind co-locating purchasing personnel with internal customers?

Co-location purchasing personnel are noted to take the responsibility in finding more definite conditions to research on manufacturing agencies that sell out products at a better agreeable value which detects at a lower price. It could be understood that through their responsibilities, the organizations are able to find specifically defined procedures to locate more specific resources that could improve the way they operate their business. Understandably, this way, the internal customers are given a better chance of receiving good deal when they are served with the option of buying directly from the distributing companies.

Being the end-consumers of the products, the internal customers are able to get the best of what the manufacturers offer at the best prices possible. At the same time, the distributors who are known to be the mid-actors in the scenario would also gain relative commission which is specifically a retrievable form of profit. Distributors are able to mandate a sense of control on the pricing of products given that they have been given the edge that they have direct connection with the manufacturers of the product. Finding co-location agencies especially indicate the distinctive entity of two organizations being connected together because of the values that they share. Notably, co-location means that these two organizations are operating beside each other, practically getting benefits from each other’s stand in the market.

When the personnel in charge for the said responsibility of looking for a co-location organization in a different area which could possibly provide a much less priced merchandise for the business being managed, it could be noted that somehow, such approach involves consistent capacity of the personnel to establish an agreement and a closed deal with the other organization aimed to be the main partner of the business he likely works for. This practical condition of the work that the organization’s personnel takes initiative of specifically allows it to gain an edge on how they are able to get the price of the products or the merchandise they offer to the market more reflective of what the market really needs based on the trend that the market imposes. Nevertheless, price-ceiling and price-grounds that are directed under government operations, are still followed accordingly. It is with this particular consideration that even though pricing power becomes the edge of the organization against other businesses in the same industry, it is evident enough that the control of the government protects the whole industry of overtly low-priced merchandize offered in the market. This is the reason why there are instances when only internal customers are able to get the best benefits from the alliance of co-located manufacturers and distributors in the industry. Specifically loyal customers of the said organizations are given the best promotional offers that they can  use as benefit from being loyal to the organization or the business. Organizations use such connective operations to be the source of their market strength especially that they are able to retain the loyalty of their consumers through giving them special points of access to the different promotions of the business along with the different price-cuts that the business is willing to give to their regular customers in the market.

In a way, the role the co-locating purchasing personnel take sets the balance of the organization’s stance in relation to its positioning in the market as a provider of goods and in the industry as a particular competitor among all the different organizations operating within the same pace. Being able to share resources with the co-located organizations of the business specifically defines the capacity of the business to co-exist with all the others hence making sure that they are able to distinctively define the aspect of camaraderie and competition in the system. Offering more to the market while being able to profit as much from the operation especially makes this approach effective in defining the value and worth of the organization as an existing entity in the society.

References

Gomez-Mejia, Luis R.; David B. Balkin and Robert L. Cardy (2008). Management: People, Performance, Change, 3rd edition. New York, New York USA: McGraw-Hill.

Kleiman, Lawrence S. “Management and Executive Development.” Reference for Business: Encyclopedia of Business.

Khurana, Rakesh (2010) [2007]. From Higher Aims to Hired Hands: The Social Transformation of American Business Schools and the Unfulfilled Promise of Management as a Profession. Princeton University Press.